Buying a new car is a great way to avoid repair bills for a decent stretch of time. Courtesy of the long warranties most manufacturers offer, a new purchase can remove this expense from the table for years. Buying an extended warranty can up the time even more, but is this purchase really worth the expense?

That is a question that can be a little difficult to answer while you are sitting in a dealership trying to decide whether to add the expense to a purchase or put it on hold. Extended warranties can be very wise buys or they can simply jack up your overall monthly payments if the cost is factored into your loan.

Some of the questions to ask yourself before deciding to get an extended warranty at the time you buy include:

•How long do I plan on keeping this car? – If you change out cars every three or four years, an extended warranty might not be worth the purchase. The new car warranty will probably cover you.

•What does the warranty cover? – Make sure an extended warranty covers what the manufacturer does under the new car warranty. If major systems are excluded, the purchase might not be worth the price.

•How much of a price break do I get if I buy it now? – If you do plan on keeping your new car for years down the road, find out if you save money on the purchase by making it immediately.

•Can I afford to buy it later? – Find out if there is a window of time for you to purchase a warranty after the car is driven off the lot. It can be cheaper to save up to pay in full for the warranty extension a year down the road rather than work it into the loan.

A new car extended warranty can be worth the price of admission. The decision to buy now or later, however, often hinges on dollars and cents and how long the vehicle will be kept.